RESERVE BANK

Otago Daily Times, Issue 22065, 22 September 1933, Page 7

RESERVE BANK

THE NEW ZEALAND BILL

COMMENT BY THE TIMES

(United Press Association.) (By Electric Telegraph—Copyright.)

LONDON, September 21.

(Received Sept. 21, at 7 p.m.)

The Times, in an editorial, says: “ Nothing could be further from the truth than the suggestion that the New Zealand Reserve Bank Bill was partly inspired by the desire of British monetary authorities to dictate to New Zealand in her monetary policy. On the contrary, the creation of a reserve bank which everywhere is recognised as a symbol of financial maturity, is the surest guarantee of independence. It has the advantage of centralising the country’s cash resources, rendering them most easily available in time of need. Meanwhile, it is satisfactory to note that the New Zealand finances show definite signs of recovery and negotiations for conversion of £5,000,000 are proceeding. There need be no fear that New Zealand will be robbed of the fruits of the cautious, responsible policy she has pursued for so many years. New Zealand’s credit is deservedly high in London, and it would be a pity if the acute controversy over the reserve bank is permitted to impair her excellent financial reputation.”